The Basic Allowance for Housing (BAH) is a U.S. military benefit paid to active-duty members to offset the cost of off-post housing. BAH rates are set by the Department of Defense (DoD) and vary depending on the member’s paygrade, dependent status, and location.
BAH rates are important because they help military members afford off-post housing. Without BAH, many military members would be forced to live on-post, which can be more expensive and less convenient. BAH rates also help to stabilize the housing market in areas with a large military presence.